Addressing the participants at the Training Session on RBI Guidelines and Facilities for Exporters organised by JBS Academy Private Limited, Shri Gaurang Vasavada, Trainer and Consultant gave a detailed overview on the Framework governing the exporters. He mentioned that Directorate of General of Foreign Trade (DGFT) was the apex regulatory body for the exporters and importers and issued the Importer and Exporter Code number the first step towards entering the Exim Trade. DGFT prepares the EXIM Policy and decides the procedures and processes for international trade.
Customs Department of the Government of India was the regulatory body for cross border trade and was responsible for valuation of goods in the given parameters, issued clearance for allowing cargo to be shipped and the managed the Export Data Processing Management System.
On the other hand Foreign Exchange Dealers’ Association a conglomerate of Banks which set the applicable foreign exchange rates and crystallised the Pre-Shipment Credit in Foreign Currency norms, negotiated the bills, decided the value date for credit and also the compensation for delay.
Another important organisation was the International Chamber of Commerce (ICC) responsible for delivering the Guidelines for International Trade. ICC formulates Uniform Customs & Practice for Documentary Credit (UCPDC-600) along with related procedures and processes.
Foreign Trade being business between two parties located in different countries comes with risk factor, which in many circumstances are difficult to be envisaged. Therefore protecting the interests of the Exim community against unforeseen circumstances becomes important. Export Credit and Guarantee Corporation (ECGC) provides much needed cushion to the exporters by providing credit and guarantee for the exported goods.
Guidance was also provided on the involvement of Reserve Bank of India with regard to currency and foreign exchange management.
Shri Vasavada also dealt at length with the different risk factors involved such as country risk, overseas party risk, exchange rate risk, voyage risk, credit risk to name a few.
How the Export Bill Cycle and other export related financial, documentary and non-financial aspects operated was also explained in detail by Shri Vasavada.
